Mayor Demings proposes task force to explore future tourist tax spending
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With tourist-tax collections soaring over $300 million in 2022, Orange County Mayor Jerry Demings announced the creation of an advisory committee to explore how to use future uncommitted revenues.
He said the proposed TDT Citizen Advisory Task Force won’t have registered lobbyists or elected officials as members and should represent a diverse, cross-section of residents. It will have representatives from the tourism industry, including Disney, Universal and SeaWorld, the Central Florida Hotel Lodging Association, the I-Drive Chamber of Commerce and the AFL-CIO labor union.
“The goal is to have representation from various geographical and socioeconomic levels,” he said. “I am confident that with citizen input, we can determine the right course of action to invest TDT funds in our community that meets statutory guidelines and benefits our residents and visitors.”
Since his election in 2018, Demings has leaned on citizen task forces to build consensus and study thorny community issues, including the affordable housing crisis, safely re-opening tourism venues after COVID-19 lockdowns, and how to stop gun violence.
Commissioners and Orange County municipalities will be invited to recommend a representative to the committee.
Demings will appoint the committee’s co-chairs.
TDT is the acronym used for Orange County’s Tourist Development Tax, a 6% charge tacked onto the cost of a hotel room or other short-term lodging. The levy also is sometimes called the hotel or bed tax.
Collections have set monthly records for 11 consecutive months, according to Orange County Comptroller Phil Diamond.
In a news release, the mayor described the tax revenue’s benefits as “far-reaching,” pointing out the funds have helped pay for the Orange County Convention Center, the Dr. Phillips Center for the Performing Arts, Amway Center and Camping World Stadium.
But last summer, as TDT collections rebounded from historic lows posted in 2020 in the wake of theme park closings and other COVID-19 lockdowns, Diamond, whose office tracks collections and spending, urged caution with new plans for the surging revenues.
“It is impossible to predict when, how much and why there may be sudden and major shortfalls in the future,” he said at the time. “But it is fiscally prudent to plan and mitigate risks, especially given our recent history, to protect the county from potential future shortfalls.”
Diamond recommended total financial reserves be replenished from $170 million to $300 million and that annual TDT collections exceed $300 million before the county consider committing those dollars for any new projects.
In April 2020, the first month after the theme parks closed, the tax brought in just $765,000, the least ever.
Revenues in 2022 topped $336 million, the most ever, and reserves will soon reach $300 million, perhaps as early as this month.
Demings said both milestones are indicators of a strong, sustained recovery of TDT proceeds.
He said tourism is a $75-billion industry and accounts for about 24% of employment in Orange County.
The region remains one of the top travel destinations in the world.
Demings said the tourism rebound has the county fast-approaching pre-pandemic levels of 75 million annual visitors.
“As a result, Orange County is now prepared to consider new projects or opportunities for TDT funding,” he said.
Other seats on the committee should be filled by a representative from the University of Central Florida student government, the Orlando Economic Partnership, the Veterans Advisory Council and chambers of commerce for African-American, Asian, Hispanic and LGBTQ communities.
“Since taking office as mayor, I have strived to promote a transparent system that encourages education and community engagement in major decisions from housing to transportation to public safety,” he said. “I would like to use the same process regarding the TDT.”
